Accelerate Diagnostics, Inc. (NASDAQ:AXDX) stock price fell 13% last week; individual investors would not be happy

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Every investor in Accelerate Diagnostics, Inc. (NASDAQ:AXDX) should know the most powerful shareholder groups. We can see that individual investors hold the lion’s share of the company with 52% ownership. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).

While individual investor holdings took a hit after prices fell 13% last week, insiders with their 29% also suffered.

Let’s take a closer look at what different types of shareholders can tell us about Accelerate Diagnostics.

NasdaqCM: AXDX Ownership Breakdown September 24, 2022

What does institutional ownership tell us about Accelerate Diagnostics?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

Accelerate Diagnostics already has institutions on the stock register. Indeed, they hold a respectable stake in the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Accelerate Diagnostics’ past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.

earnings-and-revenue-growth
NasdaqCM: AXDX Earnings and Revenue Growth September 24, 2022

Hedge funds don’t have a big stake in Accelerate Diagnostics. Jack Schuler is currently the largest shareholder, with 19% of the outstanding shares. Meanwhile, the second and third largest shareholders hold 6.6% and 4.0% of the outstanding shares respectively.

A closer look at our ownership data shows that the top 25 shareholders collectively own less than half of the register, suggesting a large group of small shareholders where no single shareholder has a majority.

While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. There is some analyst coverage of the stock, but it could still become better known over time.

Insider Property of Accelerate Diagnostics

The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Our most recent data indicates that insiders own a reasonable proportion of Accelerate Diagnostics, Inc. Insiders own $47 million of stock in the $162 million company. This may suggest that the founders still own a lot of shares. You can click here to see if they bought or sold.

General public property

The general public, including retail investors, owns 52% of Accelerate Diagnostics. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Accelerate Diagnostics, we need to consider many other factors. Like risks, for example. Every business has them, and we’ve spotted 5 warning signs for Accelerate Diagnostics (4 of which make us uncomfortable!) that you should know.

At the end of the day the future is the most important. You can access this free analyst forecast report for the company.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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